Essay about Starbucks Case Study

962 Words Jan 10th, 2016 4 Pages
Case Study: The Globalization of Starbucks

From the famous green and white logo, to the coffee house style environment, Starbucks has built an empire located on every street corner. We also cannot forget the red cup debacle just this Christmas! Starbucks is a true icon in the world of coffee. Starbucks created a true lifestyle for the world that some small businesses can only dream of. Starbucks currently has more than 21,000 stores in over 65 countries and was founded in 1971.

The original idea for the Starbucks format came from Howard Schultz, who at the time was just the Director of Marketing but later become the CEO. Schultz took a trip to Italy as the marketing director and came back enchanted by his experience. The logo
…show more content…
Starbucks chose Japan, as it’s first market to open up shop. They went in to a joint venture with a local retailer, Sazaby Inc. and could not have been wiser in this choice. To me that is just impeccably smart thinking on Starbuck’s end. The major benefit in doing this is the company you partner with is all too familiar with the market in that county. They are familiar with the laws, requirements, and anything else you may need to know. The other benefit in having the joint venture is still being able to maintain control with your vision. Starbucks implemented requirements for the Japanese markets in regards to training classes, which replicated that of the U.S. employees. The biggest lesson that can be drawn from the joint venture between Starbucks and Sazaby Inc. would be to know your limits! As a U.S. based company only, Starbucks knew that going international would not be easy. They entrusted in a well-known Japanese local retailer and made an investment and it turned in to so much more. Japan was only the start to what was to come.

Globalization is defined as the way countries and people of the world interact and integrate. Starbucks is a true force for globalization and many companies seek to even accomplish just a small fraction of what Starbucks has been able to accomplish in only 45 years. But Starbucks also encountered issues as it tried to grow but learned from those like any other. I think the biggest challenge is

Related Documents